Cross-media Marketing - Cross Media Marketing Corporation and Lawsuits

Cross Media Marketing Corporation and Lawsuits

The Cross Media Marketing Corporation is a company that uses e-mail messages or telephone calls, which are personalized to each specific customer, to sell their product. In 2002, federal regulators filed a criticism that the corporation’s magazine division was breaching marketing regulations. The Federal Trade Commission stepped in and claimed the company withheld information, misrepresented subscription lengths and prices, and billed customers for magazines that they did not order. The Corporation was sentenced by the F.T.C. to pay a hefty fine for their violation. A year later, in 2003, The Cross Media Marketing Corporation was forced to lay off 300 people and agreed to a $1.1 settlement fee with the F.T.C for ignoring customer’s desires to cancel their subscriptions and for misrepresenting the costs of packaging. Currently, the company is liquidating its possessions.